The grains are moving lower this morning with corn down a penny, soybeans down 4 cents and wheat in Chicago down 3 ½ cents. Yesterday’s rally in Soybeans sparked some farmer selling after prices rose sharply to an intraday high of $10.29. Keep a close watch on corn today as it trades next to a support level of 3.76 cents which was a previous low on in November, December and the middle of January. This morning a reportable sale of 120,000 metric tons of HRW wheat to Egypt was announced.
The Brazil trucker strike and blockade continues this morning although a main road to the Port of Santos was cleared early Wednesday. Even though the striking trucks were dispersed along that stretch, congestion remains an issue with a large amount of trucks looking to use the road soon. The Attorney General stated that they will begin levying significant fines if the strike continues to grow. Despite the threat of large fines, the strike continues throughout many of the countryside roads as truckers protest the increase in diesel prices. Traders are still concerned that the flow of grain to ports and the flow of diesel to small towns which fuel combines will cause slowdowns and delays in weeks to come.
Also in Brazil, scattered showers will continue Thursday through Sunday and continue to disrupt corn planting. Corn planting is about a week behind normal and the 6-15 day forecast showing very few windows of opportunity for corn planting between precipitation events.
